This post will help you to guide you to make a small amount of money daily. It is just an strategy that I am sharing with you here. First of all I don't know exactly what your trading
style is or in which segment you are making money. What mistake you are making
what not.
I can acknowledge you on a basic working pattern
which you can try if it helps. There are 5 Golden principle of trading:
- Always do your research
- Stick to your research no matter its right or wrong
- Never ever trade without target and stop loss
- Never ever change your target and stoploss. If required decrease the two rather increasing from the initial levels.
- This market is in existence for years and it will be opening tomorrow so we are in no hurry.
Best strategy is to save on your brokerage first
because your brokerage charges eat up your profit amount and increase loss
amount alot. Lets say you make a profit of 2,000/- but your brokerage is 500/-
for that trade what you made 1500/- only and if you make a loss of 2000 and
brokerage is constant so your Loss is of 2500/-. And people make more loss by
themselves than profit.
So saving on brokerage is a must as that is a
constant expense or loss that cannot be escaped. If you have a good brokerage
plan you have win half of the Battle already.
I have an account with Zerodha if you want you can
open with them to simply dropping your details and click on call back they'll
call you and guide you. Open an online trading and demat account with Zerodha and
enjoy the lowest brokerage
Now come trading well there are 2 types of trading:
- Intraday or day trade: Intraday trading deals with buying and selling of stocks on the same day, during the trading hours that are stipulated by the exchange. An intra-day trader is a particular type of stock trader. This trader both opens and closes a new position in a stock in the same trading day. Intraday trading is the most popular thing in Indian stock market specially amongst new generations. Just come with small capital and use leverage to trade.
- Positional or holding: Position trading is the opposite of day trading because the goal is to profit from the move in the primary trend rather than the short-term fluctuations that occur day to day. Its is conventional way of trading you just buy a stock or a counter and you keep it.
Talking about day trading or intraday trading is
simple. Actually talking about it, it's better over positional trading because
Return on Investment is good (approx 10% of your investment), risk is low if
you are going put stoploss. Best part your funds are not getting blocked, not
Time consuming. As you don't have a burden of your position what market will be
tomorrow. You don't need higher investment as you get leverage over margin or
limit over investment in demat.
So it's actually good to trade intraday or day
trade rather than holding or taking delivery trades.
Now the question is how do we do it? Well for it we
have 2 working strategy which don't need much effort. One is technically understanding
stocks and trading accordingly. Second is working fundamentally. You can choose
whichever you like.
Working technically you need to choose stock on the
basis of technical parameters like 15 min candlestick of any stock you can
choose. I am using Zerodha that and I do have charts available there on script
only. If you don't have such terminal you can open account with zerodha via
link mentioned in this post.
To learn technically trading you need to know
basics of Candlestick patterns. You can prefer YouTube for learning candlestick patterns. And if
you like, this channel is my favorite as they have 2 min videos that shows how
to interpret candlestick and explained via applying on NIFTY chart.
If you trade small even you can earn that much in
these follow buy above high and sell below low strategy in these score for
1000/- – 2000/- only and exit. Make sure you are using stoploss and Target.
You can trade in equity. In equity you have:
- Cash Trading or Cash Market: In this buying or selling of securities is done by providing the capital needed to fund the transaction without relying on the use of margin. Cash trading is achieved using a cash account, which is a type of brokerage account that requires the investor to pay for securities within two days from when the purchase is made.
- Derivative: It is the financial market for derivatives, financial instruments like futures contracts or options, which are derived from shares or cash segment only.
Now, let's say you are tempted to trade in ICICI
BANK just go to ICICI and open chart and see 15 min or 10 min candlestick there
and if you get any buying signal or selling signal make a trade put a stoploss
as per candlestick analysis and Target not higher than 1:1 ratio. That is risk
reward ratio should be equal. If you're looking to take risk of loosing 1000/-
you should be making a profit of 1000/-. It can go higher than that but it
needs lot of experience. I can make 10,000/- against risk of 500/- in intraday.
Visit my blog DAILY CAPITAL MARKET DOSE, Google it and look for TRADING IS AN
ART and you will see power of trading.
Well you can do fundamental trading also with
minimum risk and less calculation. The easiest way of earning small. You need
to know about options for it. I have a small trick that can work on options and
get you some good return with less investment of time and money. Here I can
educate only on working idea not in brief theory because that will be too much
information. You need to do a basic research on options before moving ahead.
If you make a profit of only 2000/- daily per trade
with this trick there are 22 trading sessions in a month on normal basis so
with 1 trade per day you have a potential to generate 44000/- per month and
this is in 1 single lot. The minimum I talk about now brokerage is not higher
with option so for 22 trades I am not going to pay more than 4000/- and if I
incurred loss even lets say 7/10 I make profit so its like I will make a loss
of 6 trades 12000/- my potential profit after brokerage charges is like
40,000/- if I deduct loss part 28,000/- of profit a month with hardly an
investment of 10,000/-.
Yes it is possible. Read it how I am going to make
it done.
I will cover maximum of it so even a new to options
trader can also work on it.
There are two types of options:
- Call Option
- Put Option
I am not going in deep details of these but just to
clarify YOU BUY CALL OPTION WHEN MARKET OR THE STOCK YOU'RE BETTING ON
IS IN BULLISH OR BUYING TREND. YOU BUY PUT OPTION IF THE STOCK OR
THE MARKET YOU'RE BETTING ON IS IN SELLING TREND/BEARISH TREND.
MOST IMPORTANT THING YOU
ALWAYS BUY AN OPTION NOT SELL IT. SELLING OPTION IS MORE
DETAILED TOPIC TO DISCUSS.
Well best strategy to employ if you're talking
about NSE options here is focus on news. Keep in touch with stock market news
like
- CNBC AWAZ
- Zee business
- NDTV Profit
Should be watched between 8:30–9:30 a.m. then you
get to know the fundamentals of stock which are in buying trend and which are
in selling trend.
Once you know which stock you're betting on simply
go to nse website and that stock in search bar on the top of it. Once you're on
that stock page simply look for “Option Chain”. Now you will get a list of
option contract. It will have both Call option and put option. Here look for
the maximum volume option WHOSE PREMIUM AMOUNT IS IN YOUR INVESTMENT BUDGET as
higher the volume more safe the trade is.
Now let me explain you the complete process. Let's
say you have heard a News about SBIN or State Bank of India. You Came to know
how much the stock can go up or at least you know yes it will go up. So
now what you do is open National
Stock Exchange of India Ltd. Website specially the website has to be
opened although you can see option price on terminal also but we are selecting
option right now. So we're at NSE website now on the top there is a search bar
and on the right drop-down box it says EQUITY. Type in State Bank of India
there or SBIN if you know the code.
Now we're on our SBIN page where it has details
about SBIN it will appear something like this:
Now you can see Get Derivatives Quote| Option Chain
click on Option Chain. The you will have this window:
Now from here you can see volume in each open
contract. We have seen on previous page SBIN cash market price is of 252/-
approx and as per example we are talking here its price will go up. So we will
look at call option segment on the left of the page. Now this segment is in 2
colors above 250 is in yellow and below it is in white. Reason there are three
types of strike price:
- In the money
- At the money
- Out the money
We're not discussing about it here again as it will
be too lengthy and detailed discussion. So white part will be the OUT THE MONEY
for call option. Now lets say you have 6000/- in your demat account. We know market
lot of SBIN is 3000 so we have to look for an option that has a value below
2.00. there is an option whose value is 1.7. Look for the nearest option in
your budget don't go too far. WE HAVE OUR COUNTER TO TRADE.
NOW OPEN THAT OPTION IN YOUR
TERMINAL OR CALL YOUR BROKER AND TELL HIM YOU WANT TO TRADE IN THIS PARTICULAR
OPTION. SIMPLY OPEN IT AND SINCE YOU KNOW ITS IN BUYING ALWAYS BUY ABOVE HIGH
VALUE. FOR HARDLY 0.50–1.00 WITH SL OR STOPLOSS OF SAME AMOUNT.
Here it has a high of 2.5 already before we came on
this so what we will do is. Buy SBIN 270 CALL MARCH CONTRACT ABOVE 2.5 that is
2.55 put target or exit position at 3.05 and stop loss of 2.05.
You need alot of skills, calculation
and knowledge to trade in market in option if you're going to trade randomly at
any price.
Things to take care of:
- Listen news between 8:30 to 9:30
- Be active or handy with laptop or desktop and mobile phone if you're offline trader.
- Put your trade only above high value only (for options).
- No one is God in this market this trick is not 100% accurate and doesn't guarantee you profit always and loss is part of market but 7/10 it will give you profit only.
- Don't wait or sit for huge target Rome wasn't built in a day.
- You can implement Same strategy of working mentioned here on cash market and future also but again just don't aim too high.
Either you can follow the above strategy or you can
have a SEBI Registered financial advisor to advise you for it. Financial
advisor are the people who advise you making money in return of their fees. If
you're not willing to spend money on paying them the mentioned can help you.
Are you still Paying 0.03% or brokerage for
intraday and 0.5% for delivery per lot/share? Get a discount broking account
with 20/- Brokerage Flat per executed intraday trade (NOT LOTS/SHARES) and 0/-
brokerage on delivery trades with Zerodha Broking. To know more register for
call back: CLICK HERE TO OPEN ACCOUNT WITH ZERODHA